Types of InsuranceTypes of Insurance you Need!

There are so many different insurance products out there. Have you considered which ones you actually need? While everyone’s needs will differ, there are 4 types of insurance that you should not be without. These will afford you maximum protection from unknown future events. Do not leave yourself or your loved ones unprotected, prepare with insurance today.

Health Insurance

Even according to the law, everyone needs to have health insurance. Why is it so important? First of all, your family’s health is the most important thing you can protect. Having health insurance will better allow you to do that through routine checkups and doctors visits. Secondly, healthcare is expensive. If you or someone in your family becomes seriously ill, it could bankrupt you. In 2007 a Harvard study found that 62% of all bankruptcies filed that year were caused by health problems.

Health insurance will give you a layer of protection to help deflect the high cost of health care. Though it may seem expensive upfront, the protection can save you a lot of money in the long run. With newly enacted laws, you may also be eligible for help through tax credits that will afford you with reduced premiums and cost-sharing alternatives.

Life Insurance

Life insurance will help to protect your loved ones from financial problems if you prematurely pass away. It is there to help replace the income that your family was accustomed to prior to your passing. You will need to have a policy that is large enough to cover funeral expenses, mortgage payments, car payments, day to day bills, and future college education, to name a few.

There are several different types of life insurance policies available for purchase. The main categories are whole life and term life. Whole life insurance will cover you for your entire life. As long as you keep up paying your insurance premiums, you will retain coverage. Since the cost of insurance through advanced age is expensive, you will pay larger premiums to build up cash value that will pay all of or supplement your payments after retirement.

Term life insurance only covers you for a certain period of years, usually 10, 20 or 30-year terms. This means that if you die within the life insurance term your family will receive the death benefit for their loss. However, if you die after your term has expired, your family will not receive any death benefit. Since the insurance company does not take as large of a risk with this type of insurance, the premiums are much less than whole term premiums.

There are other options and sub-options of life insurance. Finding which type of policy is best for you can be tricky. A qualified insurance agent can help to place you in the perfect policy for your needs.

Disability Insurance

Disability insurance is an easily overlooked type of insurance. This is due to the fact that many people think that their employer or social security will cover their lost wages. This is not always the case. If you are injured off-the-job, your employer will not cover any of your lost wages and if you are expecting to rely on social security you may have a long waiting period in which you have no income. Further, Social Security Disability payments were only awarded to 32.16% of the applications submitted in 2015 according to the Social Security Administration (www.ssa.gov ) Private Disability Policy will protect you from any complications in either of those circumstances.

If you are injured off-the-job and not able to work disability insurance will pay you a set amount each month to replace your income. However, you won’t receive payment for missing one day of work; you will have a waiting period that you will have to go through before you can receive payment. The typical waiting period is 90 days. You can find policies with shorter waiting periods, but the shorter the waiting period, the more expensive your premium will be.

There are a lot of different types of policies and coverage choices available for those interested in disability insurance. Meet with a qualified professional who can help you sort through and find the best choice for your circumstances.

Long Term Care Insurance

Long-term care insurance is another overlooked and little-known type of insurance. Long-term care insurance will pay for you to receive in-home or care in a Skilled Nursing Home, Assisted Living Facility or Independent Living if you ever need it. Nursing homes care centers and in-home care is extremely expensive and can completely deplete your estate of all its assets. Long-term care insurance will help protect your assets for a spouse and/or your heirs, that by covering the majority of the cost of care. Meet with a qualified insurance agent to determine which type of coverage is best for you. It is important to note that the younger you are when you purchase your policy, the less expensive it will be. Long-term care insurance is not something you should put off! If you are age 50 or over, it is time to at least review your options.

Overview

Insurance is a means to protect ourselves from unknown circumstances. While there are many important types of insurance, we just briefly highlight the 4 types of insurance that no one should find themselves without. Do not delay in purchasing any policies because you think you are too young or too healthy. The sooner you purchase one of these insurance policies, the better. By planning early, you will pay less and have peace of mind knowing that you are covered for whatever may come.